Azrieli Expands London Data Center with New Long-Term Service Contract
Azrieli Group is advancing its data center operations in London by signing a binding agreement to provide services at its expanding facility, generating an average annual net operating income (NOI) of 24.9 million pounds (approximately 100 million shekels) starting in early 2027. This deal fulfills a memorandum of understanding with Green Mountain, Azrieli's subsidiary managing its data center activities and led by former group CEO Eyal Hankin. The contract covers an eight-year term with a two-year extension option for delivering 13.6 megawatts of power. The facility handover is expected within about 100 days, enabling revenue generation within months.
Azrieli acquired the London data center in 2023 and began doubling its capacity from 7 to 14 megawatts last year, alongside signing the initial memorandum with the client. Additionally, Azrieli signed another memorandum last year to build a second 16-megawatt data center on adjacent land purchased in 2023. In 2024, Azrieli's data center NOI reached 449 million shekels, with the new London facility contributing an estimated 22% increase. The majority of last year's NOI stemmed from a 90-megawatt data center campus in Norway, fully operational since Q1 2025 under a TikTok agreement.
Further agreements in 2025 include an 80-megawatt campus in Norway with an annual average income of about 440 million shekels and a 54-megawatt facility in Frankfurt, Germany, generating around 145 million shekels annually. These contracts collectively project Azrieli's annual NOI from signed data center deals to approximately one billion shekels. The operation of these new facilities will phase in from late 2025 through 2026, with income increases following accordingly.
Known primarily for its shopping mall operations, Azrieli is the largest real estate company by market value on the Tel Aviv Stock Exchange at 49.4 billion shekels. Data centers constitute its third-largest business segment after malls and offices and have been its main growth driver recently. Unlike other major real estate firms such as Melisron, Big, and Amot, Azrieli's stock has gained 11.7% since the start of the year, reflecting investor confidence in its expanding data center portfolio.
